Tesla Eyes Major Investment In India, Signals Growing Interest In The EV Market

Tesla, the renowned electric vehicle (EV) manufacturer, is eyeing a major investment in India. The company's CEO, Elon Musk, expressed his intentions following a meeting with Prime Minister Narendra Modi during his recent visit to the United States. The potential investment signifies Tesla's interest in the rapidly expanding Indian market and demonstrates India's growing prominence in the global EV industry, PTI Reported.

"I am confident that Tesla will be in India and we will do so as soon as humanly possible," Musk told reporters after the meeting. "We don't want to jump the gun on an announcement, but I think it's quite likely that it will be a significant investment, a relationship with India."

Musk claimed India has significant potential for sustainable energy, including solar power, stationary battery packs, and electric vehicles. He has been looking into potential locations for Tesla's second factory, and is reportedly exploring France, South Korea, and Indonesia.

Calling himself "a fan" of Modi, he said the prime minister "really cares about India because he is pursuing us to make a significant investment in India." "Great meeting you, Elon Musk. We had multifaceted conversations on issues ranging from energy to spirituality," Modi tweeted after the meeting. Musk replied back, saying "It was an honor to meet again." "Great conversation with @NarendraModi," he said.

Indian authorities and Tesla have been in communication for several months. Tesla India Motors and Energy Pvt. Ltd., the name under which the company is already registered, has been doing car testing there as well. The government, meanwhile, is being urged to lower import duties on parts and automobiles for electric vehicles.

The EV manufacturer needs to first begin production in India before tax benefits may be taken into consideration, according to earlier statements from government officials. Before making a significant investment, the American EV juggernaut intends to first measure the market in this country by providing CBU (Completely Built-Up) units.

Hyundai, the largest automaker in South Korea, has also backed Tesla's request, although Indian competitors Tata Motors and Ola Electric oppose it because they think that lowering the import tax would harm domestic manufacturing. During his historic trip to the US, Prime Minister Modi met with well-known Americans from many walks of life.

"Modi met Elon Musk, tech pioneer, business magnate and CEO of Tesla Inc. & SpaceX; owner, CTO and chairman of Twitter; founder of the Boring Company and X-corp; co-founder of Neuralink and OpenAI, today, in New York, USA.

"The Prime Minister appreciated Musk's efforts at making technology accessible and affordable in various sectors. The Prime Minister invited Musk to explore opportunities in India for investments in electric mobility and the rapidly expanding commercial space sector," an official press statement said. Later in a video message, Musk said he was "incredibly excited about the future of India".

"India has more promise than any large country in the world. He (PM Modi) really cares about India as he's pushing us to make significant investments in India. I am a fan of Modi. It was a fantastic meeting and I like him quite a lot," he added.